Yesterday, WTI crude closed up $0.54/bbl to $48.62, RBOB closed up $0.0088/gal to $1.6544, and HO finished up $0.0112/gal to $1.4887. Prices were up yesterday due to an expected draw on crude inventories because of the Canadian Wildfires last week. The API statistics confirmed those expectations with a crude draw of 5.1 million barrels. Also, Cushing, OK had its first draw in four weeks of 189,000 barrels. The APIs showed that distillates drew 2.9 million barrels, and gasoline built 3.6 million barrels. WTI crude and HO have been trading up this morning, while RBOB is slightly in the red. The Canadian wildfires were the main cause of the draws last week. Athabasca Oil Corp. estimates production will resume and no long term impacts will happen.
Along with the Canadian wildfires, issues in Nigeria, Venezuela and France have also provided support for the increase in oil prices. The chart below shows the price of crude since 1970 and how prices have reacted to major world events.
The DOE statistics released today at 10:30 a.m. ET showed:
Crude: -4.2 million barrels; Cushing: -649,000 barrels
Distillates: -1.3 million barrels
Gasoline: +2.0 million barrels
Since the release of the statistics, WTI and HO continue to trade up but has slowly been coming off while RBOB remains trading down.